Exhibit 99.1

Pro Forma Financial Projections.

The consolidated financial projections (the “Projections”) for GSI Group Inc. (“Holdings”) and its subsidiaries (collectively, the “Company”), attached hereto as Exhibit “A”, include the expected financial results of GSI Group Inc., GSI Group Corporation and MES International Inc. (the “Debtors”), as well as the expected results of Holdings’ wholly-owned subsidiaries which are not Debtors and are not involved in the cases commenced under chapter 11 of the Bankruptcy Code (“Chapter 11”) pending before the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court’) with respect to each of the Debtors (the “Chapter 11 Cases”) (collectively, the “Reorganized Company”). The Projections were prepared by the Debtors in good faith using assumptions believed to be reasonable. A significant number of assumptions about the operations of the business after emergence from bankruptcy were based, in part, on economic, competitive, and general business conditions prevailing at the time the Projections were developed. Further, and notwithstanding the uncertainty inherent in bankruptcy, these projections do not contemplate any negative impact on the business arising from the Second Modified Joint Chapter 11 Plan of Reorganization for the Debtors (as it may be amended, supplemented or otherwise modified from time to time, and the exhibits and schedules thereto, the “Modified Plan”). Any future changes in these conditions, including a delay in the consummation of the Modified Plan, may materially impact the ability of the Reorganized Company to achieve the financial results set forth in the Projections. In addition, the Projections have been prepared on the basis that a debt restructuring will occur and the current principal debt balance of $210.0 million owed on the 11% Senior Subordinated Notes due 2013 (the “Senior Notes”) and the $20 million owed on that certain 12.94% promissory note issued by GSI Group Corporation to GSI Group Limited, dated as of July 25, 2008 (the “GSI UK Note”), will be exchanged for new senior secured notes of GSI Group Corporation, as reorganized (“Reorganized GSI”), in a principal amount of $120.5 million (the “New Senior Secured Notes”) and 58.9% of the Debtors’ equity. Holders of the Senior Notes and GSI UK Note will share pro-rata in both the New Senior Secured Notes and Debtor’s equity. The holders of the Senior Notes and the GSI UK Note will be allocated $110 million and $10.5 million of the $120.5 million New Senior Secured Notes, respectively. The 58.9% equity in the Debtors’ will be allocated 53.8% and 5.1% to the holders of the Senior Notes and the GSI UK Note, respectively. Due to the fact that the holder of the GSI UK Note is wholly-owned foreign subsidiary of Holdings, the note and resulting fees and interest associated with its pro-rata share is not reflected as debt or cash disbursements in the Projections of the Company as it is intercompany and eliminated in consolidation.

The Projections should be read in conjunction with the assumptions and qualifications set forth herein, the footnotes included in the Projections and the Debtors’ historical consolidated financial information (including the notes and schedules thereto). The Projections cover the operations of the Reorganized Company through 2014. The Projections are based on numerous assumptions, including confirmation and consummation of the Modified Plan in accordance with

its terms; realization of the operating strategy of the Reorganized Company; industry performance; no material adverse changes in applicable legislation or regulations, or the administration thereof, or generally accepted accounting principles; general business and economic conditions; competition; retention of key management and other key employees; absence of material contingent or unliquidated litigation, indemnity, or other claims; and other matters, many of which will be beyond the control of the Reorganized Company, and some or all of which may not materialize.

Additionally, to the extent that the assumptions inherent in the Projections are based upon future business decisions and objectives, they are subject to change. Although the Projections are presented with numerical specificity and are based on reasonable expectations developed by the Debtors’ management, the assumptions and estimates underlying the Projections are subject to significant business, economic, and competitive uncertainties and contingencies, many of which will be beyond the control of the Reorganized Company. Accordingly, the Projections are only estimates and are necessarily speculative in nature. It is expected that some or all of the assumptions in the Projections will not be realized and that actual results will vary from the Projections. Such variations may be material and may increase over time. In light of the foregoing, readers are cautioned not to place undue reliance on the Projections. The projected financial information contained herein should not be regarded as a representation or warranty by the Company, the Debtors, the Debtors’ advisors, or any other person that the Projections can or will be achieved.

The Projections were not prepared in accordance with standards for projections promulgated by the American Institute of Certified Public Accountants or with a view toward compliance with published guidelines of the Securities and Exchange Commission (“SEC”) regarding projections or forecasts. When an entity emerges from Chapter 11 bankruptcy, the emerging entity is a new legal entity. The new legal form of the emerging entity does not, however, dictate the accounting treatment as either a new or continuing entity. The Reorganized Company may qualify for fresh start accounting. Fresh start accounting represents a change in the historical book basis of the assets and liabilities of the reconstituted entities if the reorganization value of the assets is less than the post-petition liabilities and allowed claims and if the pre-petition shareholders lose control of the reconstituted entity by receiving less than 50% of the voting shares of the emerging entity. If either condition is not met, a new reporting entity is not created for accounting purposes and fresh start accounting is not applicable. The Consolidated Balance Sheet included in the Projections does not reflect fresh start accounting due to the inherent uncertainty of the accounting entries that would be required. Therefore, final entries to convert the debt to equity could cause the ultimate audited balance sheet to differ significantly from that reflected in the Projections. However, any required entries for fresh start accounting are not expected to impact cash balances significantly. Moreover, the Projections have not been audited, reviewed or compiled by the Debtors’ independent public accountants.

Certain statements in these Projections are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in these Projections that do not relate to matters of historical fact should be considered forward-

looking statements, and are generally identified by words such as “expect,” “intend,” “anticipate,” “estimate,” “plan,” “believe,” “will,” “project,” “budget,” “forecast,” “predicts,” “potential” “may,” “could,” “should” and other similar expressions. These forward-looking statements include, but are not limited to, statements related to: the terms of the Modified Plan including the impact and the results thereof; the Projections and the underlying assumptions related thereto; and other statements that are not historical facts. These forward looking statements contain estimates and involve a number of risks, uncertainties, assumptions and other factors that could affect future results and cause actual results and events to differ materially from historical and expected results and those expressed or implied in the forward looking statements, including, but not limited to, the following: the Company’s ability to continue as a going concern, the ability of the Company to reach agreement on definitive documentation and successfully complete the transactions contemplated by the Modified Plan; the outcome of the Company’s Chapter 11 bankruptcy proceedings, including whether or not the proposed Modified Plan is ultimately approved by the Court and the final terms thereof; the potential adverse impact of the Chapter 11 bankruptcy proceedings on the Company’s business, financial condition or results of operations; the occurrence of any event, change or other circumstance that could give rise to the termination of the amended plan support agreement pursuant to which holder of Senior Notes have agreed to support the Modified Plan; the completion and outcome of the Company’s financial restatements and review of financial results; the risk that final results of the Company’s financial restatements could change the Projections; changes in business strategy, policy or other decisions by the Company’s reorganized board of directors following emergence from the Chapter 11 bankruptcy proceedings and the risk that such changes could materially impact the Projections; the Company’s ability to complete and file its delayed periodic reports with the SEC on a timely basis; the highly speculative nature of the Projections; the highly unpredictable nature of the semiconductor and electronics materials processing industry; deteriorating market conditions; the effect of the current financial and economic crises on credit markets, financial institutions, customers, suppliers and consumers; the Company’s ability to manage its significant indebtedness in light of current economic and business conditions; the results of the proposed restructuring including the issuance of a substantial amount of equity securities in exchange for a portion of the Company’s current indebtedness and the dilutive impact of such issuance, and the incurrence of additional material obligations as part of any such restructuring; the Company’s ability to reduce operating expenses and achieve anticipated cost reductions and savings; the Company’s ability to grow and increase profitability; future liquidity and valuation of auction rate securities; changes in accounting standards; failures of the Company to properly identify the timing of when revenue should be recognized; the Company’s ability to quickly increase manufacturing capacity and promptly respond to fluctuating product demands; the Company’s need to invest in research and development; the Company’s ability to develop and deliver new competitive technology and enhancements and customer acceptance thereof; failure to identify and manage weaknesses in internal controls; the effects of competition; risks related to consolidation of operations and the integration of operations and employees of acquired businesses, including Excel Technology, Inc.; the Company’s inability to recognize synergies of acquired businesses, including Excel; the Company’s ability to regain listing of the Company’s shares on Nasdaq; and the risks of existing and future litigation and governmental or other regulatory inquiry or proceedings arising out of or related to the Company’s revenue recognition practices. Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company’s operating

results and financial condition are discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 and in the Company’s subsequent filings with the SEC made prior to or after the date hereof. Such statements are based on the Company’s management’s beliefs and assumptions and on information currently available to the Company’s management. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the date of this document. The information included in these Projections is not intended as and should not be viewed as a substitute for full financial statements.

GSI Group Inc.

Consolidated Balance Sheet Projections

Unaudited—Before Restatement

See Accompanying Notes to the Consolidated Financial Statement Projections

GSI Group Inc.

Consolidated Income Statement Projections

Unaudited—Before Restatement

See Accompanying Notes to the Consolidated Financial Statement Projections

GSI Group Inc.

Consolidated Cash Flow Projections

Unaudited—Before Restatement

See Accompanying Notes to the Consolidated Financial Statement Projections

Notes to the Financial Projections

The Debtors developed the Projections contained herein based on the following assumptions, among others: